星期六, 6月 20, 2009

Some memos

1. Mortality derivative must have something to do with weather derivative since both of them are exogenous of market thus should/can be dealt with simliar technique (the treatment on risk-neutral transformation is especially important!!)

2. irrationality should be included in consideration of pension investment

3. If labor income resembles coupon payment (i.e., we are bond with multiple default triggers, which is kinda sad :( ), how should this reflects in our investment?

4. Do people consider mortality when they invest? Are they rational when facing the probability of death?

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